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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): October 25, 1996
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(October 24, 1996)
JEFFERSON SAVINGS BANCORP, INC.
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(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
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(State or Other Jurisdiction of Incorporation)
0-21466 43-1625841
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(Commission File Number) (IRS Employer Identification No.)
14915 MANCHESTER ROAD, BALLWIN, MISSOURI 63011
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(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (314) 227-3000
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
This Report Contains 8 Pages and the Exhibit Index is on Page 3
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ITEM 7. Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired - Not applicable.
(b) Unaudited Pro Forma Financial Information - Not applicable.
(c) Exhibits The following exhibit is included with this Report:
Exhibit No. Exhibit
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99 Earnings Press Release, dated October 24, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: October 24, 1995.
JEFFERSON SAVINGS BANCORP, INC.
By: /s/ Paul J. Milano
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Paul J. Milano
Senior Vice President, Treasurer, Chief
Financial Officer and Senior Accounting
Officer
2
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EXHIBIT INDEX
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<TABLE>
<CAPTION>
Exhibit No. Description Page
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<S> <C> <C>
99 Earnings Press Release, dated October 24, 1996......... 4
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[LOGO] JEFFERSON SAVINGS
BANCORP, INC.
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FOR IMMEDIATE RELEASE FOR MORE INFORMATION
Paul J. Milano
Chief Financial Officer
(314) 227-3000
NASDAQ Symbol: JSBA
In newspaper stock tables generally JeffSvg
JEFFERSON SAVINGS BANCORP
REPORTS THIRD QUARTER RESULTS
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ST. LOUIS, October 24, 1996...As the result of certain non-recurring charges,
including a special assessment to recapitalize the Savings Association Insurance
Fund ("SAIF"), Jefferson Savings Bancorp, Inc. ("Jefferson Bancorp" or "the
Company"), the holding company for Jefferson Savings and Loan Association, F.A.
of St. Louis and First Federal Savings Bank of North Texas, reported a third
quarter after-tax loss of $2.8 million or $0.72 per share. Net income for the
quarter prior to non-recurring charges was $1.9 million or $0.48 per share. This
compares to net income of $1.8 million or $0.47 per share in the same period
last year and represents a 4% increase in net income before non-recurring
charges. Non-recurring charges, which totaled $4.7 million net of tax or $1.20
per share, consisted of a one-time special assessment to recapitalize the SAIF,
which insures the Company's deposits, and a loss on the sale of mortgage-backed
securities. The Company's actual net income for the first three quarters of 1996
was $771,000 or $0.19 per share and earnings for the same period prior to non-
recurring charges were $5.5 million or $1.39 per share. This compares to $4.5
million or $1.14 earned in the first three quarters of last year.
The long awaited legislation to recapitalize the SAIF was signed into law by
President Clinton on September 30, 1996. It provided for a one-time assessment
to all financial institutions holding SAIF insured deposits. The Company's share
of the assessment was $5.6 million which represents an after-tax charge to
earnings of $3.5 million or $0.88 per share. In addition to the special
assessment, the legislation also provided that, beginning on January 1, 1997,
industry-wide SAIF premiums will be reduced resulting in an estimated reduction
in the Company's federal deposit insurance premiums of approximately 60%.
14915 Manchester Road . Ballwin, Missouri 63011 . (314) 227-3000
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The Company took steps during the third quarter of 1996 to restructure its
balance sheet which will enable it to take greater advantage of the strong Texas
loan market. These steps consisted of the decision to sell approximately $63
million in low yielding mortgage-backed securities, which were classified as
available for sale, and to use the proceeds of the sale to repay advances from
the Federal Home Loan Bank. These transactions will remove marginally profitable
assets from the balance sheet and free up capital which can be used to fund
highly profitable loans in the Company's Texas market. As a result of the
decision to sell the mortgage-backed securities, a one-time, after-tax loss of
$1.3 million, or $0.32 per share, was recognized in the third quarter. This had
no additional effect on stockholders' equity or book value per share as these
securities had been marked to market in accordance with Statement of Financial
Accounting Standards No. 115 and accordingly, the loss had already been relected
as a reduction in stockholders' equity.
Notwithstanding the significant nonrecurring charges incurred during the
quarter, the Company's capital position continued to strengthen. The ratio of
stockholders' equity to assets increased from 7.02% at December 31, 1995 to
7.24% at September 30, 1996 and book value per share increased from $21.49 at
December 31, 1995 to $21.59 at September 30, 1996. Both of the Company's thrift
subsidiaries are considered "well capitalized" under Federal regulations.
The Company's Texas operations continued to contribute to loan growth and
improved net interest margins. Loans receivable increased $32.0 million or 4.1%
from $788.1 million at December 31, 1995 to $820.1 million at September 30,
1996. Loans originated and purchased totaled $276.8 million for the nine months
ended September 30, 1996 compared to $127.7 million for the comparable period a
year ago. The Texas operation contributed about 58% of this activity during 1996
compared to about 33% last year. The Company's average yield on loans receivable
increased from 7.65% for the third quarter of 1995 to 8.11% for the third
quarter of 1996. This increase, combined with a decrease in the Company's cost
of funds, helped the Company's net interest margin improve from 2.26% for the
third quarter of 1995 to 2.83% for the third quarter of 1996. Asset quality also
remained strong. The ratio of net nonperforming assets to total assets at
September 30, 1996 was 0.75%.
The Company continued to focus on expense control during the period. The ratios
of noninterest expense to average assets prior to nonrecurring charges were
1.65% and 1.75% for the three and nine month periods ended September 30, 1996,
respectively. While this represented an increase over the comparable 1995 ratios
of 1.47% and 1.33% for the three and nine month periods, respectively, the 1996
ratios were still significantly below historical industry averages. The
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increases during 1996 were generally caused by the addition of the Company's
Texas operations during the second quarter of 1995.
The Board authorized a Dividend Reinvestment and Stock Purchase Plan during the
third quarter. The new plan allows the Company's stockholders to reinvest
dividends in shares of the Company's common stock at a discount and to buy
shares directly from the Company without paying brokerage commissions, fees or
service charges.
The Company recently announced its pending acquisitions of Texas Heritage
Savings Association/Banc of Rowlett, Texas ("Texas Heritage") and L & B
Financial, Inc. of Sulphur Springs, Texas ("L & B Financial"). Texas Heritage
has total assets of approximately $68 million with its main office in Rowlett,
Texas and three branches located in Garland, Rockwall and Bedford, Texas. L & B
Financial has total assets of approximately $143 million with its main office in
Sulphur Springs, Texas and five branches located in Mt. Vermon, Mt. Pleasant,
Daingerfield, Pittsburg and Texarkana, Texas. The Company presently has
approximately $1.1 billion in assets, with 10 offices in Missouri and 12 offices
in Texas.
Financial Tables Attached
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<TABLE>
<CAPTION>
JEFFERSON SAVINGS BANCORP, INC.
AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
(In Thousands)
September 30, December 31,
Assets 1996 1995
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<S> <C> <C>
Cash and investments (1)(2) $ 113,491 85,801
Mortgage-backed securities, net (2) 155,578 232,883
Loans receivable, net (3) 820,130 788,085
Excess of cost over fair value of net
assets acquired 14,370 14,496
Accrued income and other assets 24,770 21,664
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$1,128,339 1,142,929
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Liabilities and Stockholders' Equity
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Liabilities:
Savings deposits $ 876,636 870,179
Borrowed money 143,901 174,962
Accrued expenses and other liabilities 26,121 17,537
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Total liabilities 1,046,658 1,062,678
Stockholders' equity 81,681 80,251
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$1,128,339 1,142,929
Condensed Consolidated Statements of Income (Unaudited)
(In Thousands, Except Per Share Data)
Three Months Ended Nine Months Ended
September 30, September 30,
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<S> <C> <C> <C> <C>
Interest and dividend income $ 20,770 $ 21,192 $ 61,436 $ 52,206
Interest expenses 13,100 14,605 39,460 36,317
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Net interest income 7,670 6,587 21,796 15,889
Provision for losses on loans 165 83 495 267
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Net interest income after
provision for losses on loans 7,505 6,504 21,301 15,622
========= ======== ======== ========
Noninterest income:
Loss on mortgage-backed securities,
net (1,931) - (1,297) -
Gain on sales of loans receivable,
net 79 70 300 132
Gain on real estate 3 353 419 531
Other noninterest income 399 482 1,415 1,014
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Total noninterest income (1,450) 905 837 1,677
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Noninterest expense:
General and administrative 4,370 4,202 14,059 9,862
SAIF special assessment 5,599 - 5,599 -
Amortization of excess cost over fair
value of net assets required 261 252 761 252
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Total noninterest expense 10,230 4,454 20,419 10,114
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Income (loss) before income taxes (4,175) 2,955 1,719 7,185
Income tax expense (benefit) (1,338) 1,121 949 2,643
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Net income (loss) $ (2,837) 1,834 770 4,542
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Earnings (loss) per share $ (0.72) 0.47 0.19 1.14
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</TABLE>
(1) Includes stock in Federal Home Loan Bank.
(2) Includes securities available for sale.
(3) Includes loans held for sale.
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<TABLE>
<CAPTION>
JEFFERSON SAVINGS BANCORP, INC.
AND SUBSIDIARIES
Selected Financial Ratios
Three Months Ended Nine Months Ended
September 30, September 30,
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1996 1995 1996 1995
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<S> <C> <C> <C> <C>
Earnings (loss) per share ($0.72) $0.47 $0.19 $1.14
Return on average equity (1) (13.74%) 9.40% 1.26% 7.95%
Return on average assets (1) (1.01%) 0.60% 0.09% 0.60%
Net interest margin (1) 2.83% 2.26% 2.67% 2.16%
Noninterest expense to average assets (1) 3.64% 1.47% 2.42% 1.33%
Amounts excluding nonrecurring
charges (2):
Earnings per share $0.48 $0.47 $1.39 $1.14
Return on average equity (1) 9.24% 9.40% 9.00% 7.95%
Return on average assets (1) 0.68% 0.60% 0.65% 0.60%
Noninterest expense to average
assets (1) 1.65% 1.47% 1.75% 1.33%
At At
September 30, December 31,
1996 1995
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Book value per share $21.59 $21.49
Stockholders' equity to total assets 7.24% 7.02%
Allowance for loan losses, in thousands $5,573 $5,096
Allowance for loan losses to net loans 0.68% 0.65%
Nonaccruing loans to net loans 0.33% 0.31%
Nonperforming assets, net to total assets 0.75% 0.59%
</TABLE>
(1) Ratios for interim periods have been annualized.
(2) Nonrecurring charges consist of $3.5 million SAIF special assessment, net of
tax and $1.3 million write-down on mortgage-backed securities, net of tax.
